Open AccessImpact of Operational Efficiency and Customer Satisfaction on Banking Performance: Empirical Examination on UAE Islamic Banking
Author(s) -
Mansoor Mulla,
Osama Isaac,
Ibrahim Alrajawy,
Amiya Bhaumik
Publication year - 2019
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.b1051.0982s1019
Subject(s) - customer satisfaction , islamic banking , goodness of fit , islam , business , structural equation modeling , service quality , operational efficiency , retail banking , service (business) , marketing , operations management , engineering , statistics , mathematics , philosophy , theology
The primary aim of the research is to examine the effect of operational efficiency and customer satisfaction in case of Islamic banking performance in UAE. Proposed model’s evaluation was done using questionnaire survey data that was obtained from 158 valid responses from Customer Service Officers, Bank Managers, Front Line Officers, and Assistant Manager working in the Islamic banks of UAE. Structural Equation Modelling via PLS3.0 software was used to define the crucial levels of associations and interactions between the tested factors. The proposed model, as evidenced by the goodness of fit of the model to the data, explained 39% of the variance in the Islamic banking performance. The multivariate analysis showed a major impact of operational efficiency on Islamic banking performance as compared to the impact on customer satisfaction. The study results gave insights into the strategies of Islamic banking system.